Financing your purchase at Best Buy
What you need to know.
- You must make a monthly payment.
- If you have any questions or if you have multiple purchases and would like to direct how your payment is applied across those multiple purchases, call Citibank at 1-888-574-1301. TTY: Use 711 or other Relay Service.
How does deferred interest financing work at Best Buy?
With the My Best Buy® Credit Cards, you can take advantage of various deferred interest financing offers. With these offers, interest is deferred for a set period of time.
By paying off the full purchase balance before the promotional financing term has ended, you will not have to pay any interest on that purchase.
However, if the purchase balance is not paid in full by the end of the promotional financing term, then the interest charged on each month’s balance will be owed at the Annual Percentage Rate for regular purchases.
Take a look at these examples:
Let’s say you purchase a laptop for $1,500 on a 24 month deferred interest plan with an Annual Percentage Rate (APR) of 26%. (The APR on your credit card may be different.)
Scenario 1 — Deferred interest plan balance paid in full within 24 months.*
You will NOT be charged interest.
| Deferred Interest Plan |
Month 1 |
Month 2 |
Month 3 |
... |
Month 23 |
Month 24 |
Total Paid $1500 | |
| Suggested Monthly Payment | $62.50 | $62.50 | $62.50 | $62.50 | $62.50 | $0 Interest |
||
| Interest | $32.50 | $31.15 | $29.79 | $2.71 | $1.35 | |||
| Principal Balance Paid $1500 | ||||||||
Remember, you must pay the entire promotional purchase balance by the end of the financing term or you will have to pay the interest charged on each month’s balance at the APR for regular purchases.
In this example, you paid more than the minimum monthly payment shown on your credit card statement each month. You could also only make the minimum monthly payments and a large balloon payment at the end of the financing term. This plan is flexible and you will not be charged interest as long as you pay the entire deferred interest plan balance in full within the plan term (24 months in this example).
Scenario 2 — Customer only makes minimum payment due each month and promotional balance is not paid in full within 24 months.*
You WILL be charged the Annual Percentage Rate (APR) charged for Regular Purchases from the date of purchase.
| Deferred Interest Plan |
Month 1 |
Month 2 |
Month 3 |
... |
Month 23 |
Month 24 |
Total Paid $1,303 + $804 remaining balance due | |
| Required Monthly Payment | $29.00 | $29.00 | $29.00 | $29.00 | $29.00 | $607 Accrued interest during promotional period | ||
| Interest | $32.50 | $31.87 | $31.24 | $18.68 | $18.05 | |||
| Interest Accrues from Date of Purchase if Not Paid in Full | Principal Balance Paid $696 | |||||||
For an APR on regular purchases of 26% and monthly payments of $29 with no other balances on your credit card, you would pay approximately $607 in interest at the end of the promotional financing term. (Your APR on your credit card account may be different.)
*In both scenarios, minimum monthly payments are required.
How does a reduced rate credit plan work at Best Buy?
With the My Best Buy® Credit Cards, you may be offered reduced rate credit plans. With these offers, interest is calculated into every monthly payment during the promotional period with a reduced interest rate compared to the Annual Percentage Rate (APR) charged for other purchases.
Payments remain fixed over the length of the term. Your total balance will be paid by the end of the term, including interest.
Take a look at this example:
Let’s say you purchase a laptop for $1,500 on a reduced rate credit plan of 24 months with a reduced Annual Percentage Rate (APR) of 7.99%.
Scenario 3 — Reduced rate credit plan of 24 months with fixed monthly payments.
Each month, the minimum payment includes 1/24 of the purchase balance plus interest.
| Reduced Interest Plan |
Month 1 |
Month 2 |
Month 3 |
... |
Month 23 |
Month 24 |
Total Paid $1632 | |
| Required Monthly Payment | $68.00 | $68.00 | $68.00 | $68.00 | $68.00 | $132 Interest Paid |
||
| Interest | $5.50 | $5.50 | $5.50 | $5.50 | $5.50 | |||
| Reduced Interest Incorporated Into Each Month Payment | Principal Balance Paid $1500 | |||||||
With a reduced APR of 7.99% and fixed monthly payments of $68 with no other balances on your credit card, you would pay approximately $132 in interest at the end of the promotional financing term.
As you can see, you will pay more than the actual purchase price with a reduced rate credit plan, because each monthly payment includes interest. However, with the reduced rate credit plan, you will pay off the promotional balance in 24 months with a reduced interest rate in comparison to the APR charged for regular purchases.
*Minimum monthly payments are required.
Topics in this Financing Guide
Frequently Asked Questions
Best Buy may have a number of deferred interest financing offers, which may also be called “Special Financing” or “Flexible Financing.” Examples include 12 month financing on purchases of $299 and up. These offers may change from time to time, but the way they work stays the same.
Interest accrues but is deferred during the promotional period. If you pay off the full deferred interest financing balance before the promotional period has ended, you will not have to pay any interest that accrued on the deferred interest financing balance.
If the deferred interest financing balance is not paid in full by the end of the promotional period (for example, 12 months), then the interest charged on each month’s balance will be owed at the Annual Percentage Rate (APR) for regular purchases. This is the same APR as would have been charged if there were no deferred interest financing offers.
Note: Your specific APR can be found on your Account Terms or monthly credit card statement. Your monthly credit card statement will also show detailed information about your financing plans, including the remaining balance and when the promotional financing period ends. Additionally, you can find your APRs on the Account Terms you received when you opened your credit card account, or online.*
In order to avoid paying interest, pay off the full promotional financing balance before the promotional period has ended. Remember, you must pay the entire promotional purchase balance by the end of the financing term or you will have to pay the interest charged on each month’s balance at the Annual Percentage Rate (APR) for regular purchases.
You can avoid interest charges on these purchases by paying the entire balance, excluding any promotional financing balance you may have, during the grace period. The grace period is at least 25 days after the close of each billing cycle. To get a grace period on purchases, you must pay the New Balance on your monthly credit card statement by the payment due date every billing cycle.
You may have to pay more than the minimum due on your monthly credit card statement to avoid paying interest. If you have only one deferred interest balance, an easy way to do this is to divide the of deferred interest balance by the promotional period and pay that amount each month.
If you have any questions or if you have multiple purchases and would like to direct how your payment is applied across those multiple purchases, call Citibank at 1-888-574-1301. TTY: Use 711 or other Relay Service.
Payments above your minimum payment amount must (as required by law) be applied to the balances with the highest Annual Percentage Rate (APR) first. If you have balances on your account besides the promotional financing, your payment will be applied to the regular balance with a higher APR first, unless you call Citibank. During the last 2–3 billing cycles of a promotion, payments above your minimum payment are applied to the expiring promotional balance.
Reminder: In all events, you must pay at least the minimum payment amount each month.
You can find your promotional financing balance either on your monthly credit card statement or Citibank account online*.
If you’re getting your monthly credit card statement electronically, don’t forget to review it online so you know your promotional financing balance and when the promotional period ends.
Best Buy may have a number of financing plans available. For example, Best Buy may offer a 36 month reduced rate credit plan on select products, in addition to a 12 month deferred financing offer. The difference between the financing offers is that, with the reduced rate credit plan, you will pay off the promotional balance in 36 months with a reduced Annual Percentage Rate (APR) in comparison to the APR charged for other purchases. Each month, the minimum payment on your monthly credit card statement will include 1/36 of their purchase balance, plus interest, rounded up to the nearest whole dollar.
Note: Your specific APR can be found on your Account Terms or monthly credit card statement. Your monthly credit card statement will also show detailed information about your financing plans, including the remaining balance and when the promotional financing period ends. Additionally, you can find your APRs on the Account Terms you received when you opened your credit card account, or online.*
If you have any questions or if you have multiple purchases and would like to direct how your payment is applied across those multiple purchases, call Citibank at 1-888-574-1301. TTY: Use 711 or other Relay Service.
Call Citibank Customer Service at 1-888-574-1301. TTY: Use 711 or other Relay Service.
You can find your APRs on the Account Terms you received when you opened your credit card account, on your monthly statement, or Citibank account online.*
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